Greg Dracon’s Post

Behind the Buck #3: the broken cap table The cap table of a startup is the list of all shareholders of your company. A cap table can become broken when the balance of the shareholders becomes unhealthy. ➡️ Too many investors ? You potentially have a governance issues and new investors will walk away ➡️ Founder too diluted ? You potentially have an incentive issue and new investors will walk away ➡️ One non-founding shareholder holds too much equity in your company ? Not good either… Broken cap tables can become red flags for investors. Avoid them by : ⚠️ selling less than 30% of equity before a series A ⚠️ pay attention to what you give out to accelerators ⚠️ regrouping small investors in Special Purpose Vehicules to ease communication ⚠️ removing dead equity from former founders ⚠️ … If you’re in that situation, can you do something about it ? Yes ! ✓Ask for relutions plans based on KPIs ✓ Negociate some clauses (like non-dilution clauses) ✓ organize secondary between new investors and dead equity holders ✓ … Not an easy task, but feasible. Let's talk about it 🙂 Thanks for the graph, Extantia !

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Running a company is more than building a product and opening a bank account. It also involves something called corporate governance, which is a framework of processes to document key company decisions, such as appointing officers and issuing equity. It's a necessary part of running a startup properly, getting funding, hiring and retaining top talent, and scaling up. Read on for basics of corporate governance, and when board consent is required for certain company actions. https://lnkd.in/e3aT_Km5

VCs are in the power law game. They know that two out of the 50 funded companies will more than offset the capital lost on the balance 48. Consumers are in the game of living, Sometimes, the biggest decision they have to make that day is whether to spend ten rupees on milk or medicine. Marketers and founders who serve consumers before VCs end up making money for VCs and for themselves. #marketingmastery #performonks

In the early stages of company-building, most founders often ignore what their board could look like a few years down. It’s only later in the post-PMF high-velocity iterative-execution phase that they understand its importance :) If possible, got to always “choose” who you want on your Board. And if not at first, gradually have people who have solid operating experience (more the better, versus just writing cheques), plus have atleast 1-2 folks (get independents if thy VCs don’t fit that bill) who have seen companies go from one person with vision to a multi-thousand people organisation doing serious revenue and profits - because they’d then ideally know of all the bumps in the road this will take, and be true “partners”

In this episode, Scott Taylor (Altheia's CFO) talks about what it's like to manage finance for a new startup, how financial planning is critical to the success of the company, and Altheia's status as a MN Angel Investor Tax Credit certified business. Listen here: https://lnkd.in/gfmAn_AE

It is so very true Atul Kulshreshtha . A CFO's role in start ups is considered an unnecessary overhead only to be realized later (if things go south) that things should have been managed in a better way right from the word 'go'. CFO function in start ups is as important, if not more, as the Product/Tech/ marketing etc. Handling tons of money coming in from VCs is certainly not an easy job.

Rippling has just raised $200M in a funding round that valued the company at $13.2B. Rippling said it has also signed agreements with investors to repurchase up to $590M of equity from current employees, former employees and early investors. The round valuation increased 12% comparing to Series E round valuation a year ago. Secondary Market: the prices from different brokers vary from 43% discount to 14% premium to the current round valuation. At Sky Cliff we provide you with the maximum market transparency. Rippling is targeting $350M revenue this year. The Sky Cliff Portal (Subscribe at www.skycliff.pro) serves as a comprehensive portfolio monitoring solution for the Late-Stage Private Equity Market (pre-IPO), offering independent informational services. Please note that Sky Cliff Professionals does not provide investment or tax advice. Potential investors are advised to seek specialized independent tax and financial advice before investing in any alternative investment. Past performance does not guarantee future returns, and investments involve risks to your capital.

New name, same great service: Introducing Mighty Financial 🔊 We're thrilled to start 2024, with a fresh new name and a renewed commitment to excellence. Our vision remains unchanged: "To be the first name founders, CFOs, and investors think of when they need help because of the quality of our service and the way we treat those around us." We have chosen to do business as Mighty Financial to eliminate any confusion in the market. We want to make it clear that we support not only startups but also small and medium-sized enterprises (SMEs). Our focus is on providing top-quality finance and accounting solutions. 💼 We are ready to embark on exciting partnerships with business owners and management teams. Our goal is to support your growth and contribute to the creation of successful outcomes for your business. 🌟 Our team of experienced professionals is dedicated to providing the highest quality solutions tailored to the needs of our clients. 🤝 Get in touch with us today! #Rebranding #MightyStartup #MightyFinancial #FinanceAndAccountingSolutions

🤝 New Partnership: DivvyDiary & DivTax 🤝 We are very happy to announce that we are joining forces with DivvyDiary within a strategic partnership! DivvyDiary is a well-known dividend investment tracker providing dividend investors with the tools they need to monitor and manage their dividend income efficiently. This partnership is a natural fit: while DivvyDiary helps you monitor dividend income, DivTax empowers you to increase those dividends by efficiently reclaiming withholding taxes in a matter of minutes. We look forward to work with Johannes and Max to make an impact for European dividend investors. Stay tuned! #fintech #startup #dividends #stockinvesting #partnership